Insufficient capital formation can limit a poor nation's economic growth.

Question

Quizplus · Accepted Answer

Insufficient capital formation means there's not enough investment in physical assets like factories, machinery, and infrastructure, which are crucial for economic growth and development. Without adequate investment, a poor nation's ability to improve productivity, create jobs, and increase incomes is severely limited, hindering its overall economic growth.

Insufficient Capital Formation Can Limit a Poor Nation's Economic Growth